Contrasting KT (NYSE:KT) and TALKTALK TELECO/ADR (OTCMKTS:TKTCY)

KT (NYSE:KT) and TALKTALK TELECO/ADR (OTCMKTS:TKTCY) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.

Analyst Recommendations

This is a summary of current ratings for KT and TALKTALK TELECO/ADR, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KT 0 0 0 0 N/A
TALKTALK TELECO/ADR 0 0 0 0 N/A

Earnings and Valuation

This table compares KT and TALKTALK TELECO/ADR’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
KT $20.28 billion 0.31 $560.71 million $1.69 7.66
TALKTALK TELECO/ADR $1.99 billion 0.78 $194.52 million $0.34 20.00

KT has higher revenue and earnings than TALKTALK TELECO/ADR. KT is trading at a lower price-to-earnings ratio than TALKTALK TELECO/ADR, indicating that it is currently the more affordable of the two stocks.

Dividends

KT pays an annual dividend of $0.51 per share and has a dividend yield of 3.9%. TALKTALK TELECO/ADR pays an annual dividend of $0.11 per share and has a dividend yield of 1.6%. KT pays out 30.2% of its earnings in the form of a dividend. TALKTALK TELECO/ADR pays out 32.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. KT has increased its dividend for 1 consecutive years. KT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

KT has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, TALKTALK TELECO/ADR has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.

Institutional & Insider Ownership

23.3% of KT shares are owned by institutional investors. 1.0% of KT shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares KT and TALKTALK TELECO/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
KT 3.77% 6.12% 2.77%
TALKTALK TELECO/ADR N/A N/A N/A

Summary

KT beats TALKTALK TELECO/ADR on 12 of the 14 factors compared between the two stocks.

About KT

KT Corp. engages in the provision of integrated telecommunication services. The company operates through the Customer and Marketing businesses. Its services include wire and wireless phones, internet, and other communication. The company was founded on December 20, 1981 and is headquartered in Seongnam-si, South Korea.

About TALKTALK TELECO/ADR

TalkTalk Telecom Group PLC provides fixed line, TV, and mobile telecommunications services. It offers landline, broadband, fiber, TV, and mobile services, including fixed price plans and unlimited broadband usage, as well as HomeSafe, a network-based security and filtering system. The company also provides various business-grade communications products and services, including Internet access, data, voice, and mobile. TalkTalk Telecom Group PLC was founded in 2002 and is based in London, the United Kingdom.

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